Rajen Shah: Tata Motors has rallied pretty well on Friday. It rallied about 4-5% on Friday on news that Mr. Ratan Tata has bought almost about 4.5 lakh shares at about 230-235 levels from the open market. So, on that news plus the JLR numbers, the stock had rallied. However, we need to keep in mind that Tata Motors has mentioned that in the medium commercial vehicle and the heavy commercial vehicles, sales are slowing down.

If we see the Indian operations, they are not seeing better performance in the coming months. China did pretty well as far as JaguarLand Rover is concerned. Last year the growth in the Chinese market was spectacular. We could see the JLR number to be a bit sluggish.

I am not saying they are going to be negative the growth will be much less than what happened in China last year. So, we are expecting Tata Motors to report about Rs 34-35 earnings. On a PE basis, the stock looks okay but there are better bets in the auto sector.

My bet in auto would be Mahindra & Mahindra. It has reported fantastic numbers for the month of May. The vehicle sales were up almost 28% which is spectacular. This year we are expecting about Rs 55 to 60 earnings. The stock is at about 11-12 PE multiple, plus Ssangyong is also turning around. So, M&M would be a better bet in the auto industry.